Seoul: South Korea’s benchmark stock index, the Korea Composite Stock Price Index (KOSPI), has risen at the fastest pace among the Group of 20 (G20) nations’ key equity indices this year. This growth was primarily driven by strong foreign buying of semiconductors and other domestic blue-chip stocks.

According to Yonhap News Agency, the KOSPI increased by 64.27 percent, or 1,542.1 points, from December 30 to the previous Friday. This rise made it the only G20 stock index to grow by more than 60 percent within the cited period. The second-highest performing stock index was Japan’s Nikkei 225, which saw a 25.98 percent increase over the same 10-month period.

This rapid rise in the KOSPI was attributed to robust buying from foreign investors who showed a keen interest in market heavyweights, particularly semiconductor shares. Foreign investors net purchased stocks worth 5.2 trillion won (US$3.6 billion) in the local market from the start of the month until Friday, as reported by data from the Korea Exchange (KRX), the leading stock exchange operator in the country. This amount was more than double the 2.5 trillion won purchased by institutional investors.

Choi Kwang-hyuk, an analyst at LS Securities Co., noted that foreign investors became active net buyers due to expectations that semiconductors would benefit from a turnaround in the artificial intelligence investment cycle and a positive outlook for the government’s stock market boosting measures.

As of 11:30 a.m. on Monday, the KOSPI was trading at 4,032.44 points, surpassing the 4,000 mark for the first time. Major shares also reached new highs, with Samsung Electronics exceeding 100,000 won for the first time, and SK hynix hitting a new high of 530,000 won during the session.

Analysts anticipated that the KOSPI’s bullish trend would persist for some time, though they cautioned against potential short-term fluctuations. Kim Young-il, an analyst at Daishin Securities Co., predicted that the KOSPI would maintain its upward momentum until the first half of 2026. However, he warned that as investors begin to verify the momentum behind the upward trend in global stock markets, local stocks may face short-term fluctuations or selling pressures.